Andrew Witty is the CEO of UnitedHealth Group, one of the largest health insurance companies in the United States. As the leader of such a major corporation, Witty likely earns a substantial salary and compensation package. However, the exact details of his pay are not made public by UnitedHealth Group.
Andrew Witty’s Career Background
Andrew Witty has served as CEO of UnitedHealth Group since 2017. Prior to that, he was the CEO of the pharmaceutical company GlaxoSmithKline for nearly 10 years from 2008 to 2017. He joined GlaxoSmithKline in 1985 and held various leadership roles in the UK, South Africa, Asia and Australia before becoming CEO.
Witty has decades of experience leading major global health care companies. His expertise spans both the insurance and pharmaceutical industries. This likely makes him a very valuable executive and leader for UnitedHealth Group as the company continues to grow and acquire new businesses.
Typical CEO Compensation
The salaries and total compensation of major public company CEOs are usually disclosed each year in the companies’ proxy statements. While the exact details of Witty’s pay package are not public, we can look at the compensation of CEOs at similar large corporations to estimate his potential earnings.
For example, the CEOs of these major health insurance companies received the following total compensation in 2020:
| Company | CEO | Total Compensation |
|---|---|---|
| CVS Health | Karen Lynch | $20.7 million |
| Cigna | David Cordani | $19.1 million |
| Centene | Michael Neidorff | $25 million |
| Humana | Bruce Broussard | $16.7 million |
Based on this benchmark, we can estimate that Witty likely earns somewhere in the range of $15-25 million in total annual compensation as the CEO of UnitedHealth Group.
UnitedHealth Group’s Financial Performance
As the largest health insurer in the US, UnitedHealth Group has a market capitalization of over $500 billion. In 2021, the company reported:
- Annual revenues of $287.6 billion
- Net earnings of $17.3 billion
- Cash flow from operations of $24.6 billion
The company has achieved strong and steady growth under Witty’s leadership as CEO. UnitedHealth Group’s earnings per share have grown at a compound annual rate of over 15% since 2017 when Witty took over. The company’s strong financial performance is likely reflected in Witty’s compensation.
CEO Pay Ratio
Public companies in the US are now required to disclose the ratio between the pay of their CEO compared to the median employee at the company. While UnitedHealth Group has not disclosed Witty’s individual pay, we can look at its CEO pay ratio:
| Year | CEO Pay Ratio |
|---|---|
| 2021 | 186:1 |
| 2020 | 178:1 |
| 2019 | 188:1 |
This means that in 2021, Witty’s total compensation was 186 times the pay of the median UnitedHealth Group employee. While a high ratio, this is actually on the lower end compared to other major corporations. For context, the CEO pay ratio for other companies includes:
- Walmart: 1,078:1
- Starbucks: 3,168:1
- Amazon: 58:1
While imperfect, this ratio reinforces that Witty is likely paid tens of millions in compensation given the size, profitability and median employee pay at UnitedHealth Group.
Estimated Andrew Witty Total Compensation
While the details are private, based on typical CEO compensation benchmarks, UnitedHealth Group’s financial performance and CEO pay ratios, it is reasonable to estimate that Andrew Witty’s total compensation is likely between $20-30 million per year.
This estimate includes his salary, cash bonus, stock awards, option awards and any other compensation from UnitedHealth Group. As CEO of one of the largest and most profitable health insurance companies, Witty is almost certainly among the highest paid executives in the industry.
Potential Future Compensation
Witty is currently only 65 years old and could continue leading UnitedHealth Group for many more years. If he remains CEO, Witty will likely continue to be awarded very generous compensation packages each year.
For example, his peer David Cordani at Cigna has been CEO since 2009 and continues receiving around $20 million in annual total compensation. Witty could follow a similar path if he remains CEO into his 70s like many top executives today.
UnitedHealth Group also continues to grow rapidly, giving Witty the opportunity to lead even larger profits and shareholder returns in the future. The company’s market cap has nearly tripled from around $200 billion to over $500 billion since Witty became CEO in 2017.
This growth could allow Witty’s future compensation to potentially approach $30-40 million annually if he has additional stock award and option growth tied to UnitedHealth’s rising market valuation.
How Witty’s Pay Compares to Healthcare CEOs
Among major healthcare company CEOs, Witty’s estimated compensation of $20-30 million per year would likely put him at the higher end but not necessarily top of the industry.
For comparison, other healthcare CEO pay packages include:
- Leonard Schleifer, Regeneron: $29 million
- John Milligan, Gilead Sciences: $29.5 million
- Alex Gorsky, Johnson & Johnson: $25 million
- Emma Walmsley, GlaxoSmithKline: $11.7 million
So while among the highest paid within healthcare, Witty’s compensation is comparable to peers from major pharmaceutical and insurance companies.
The CEOs of some healthcare services and hospital systems do receive even higher compensation, such as:
- Rod Hochman, Providence: $37.6 million
- Kevin Lofton, CommonSpirit Health: $31.5 million
However, UnitedHealth Group as an insurer has higher revenues and profits than many providers and hospital operators. So Witty is likely paid appropriately high relative to the size and financial results of UnitedHealth Group.
How Andrew Witty’s Pay Compares to UnitedHealth Group Employees
Based on UnitedHealth Group’s CEO pay ratio, Witty’s compensation is estimated to be around 186 times higher than the company’s median employee salary.
With median employee pay around $110,000 at UnitedHealth, this means Witty likely makes over $20 million annually based on the pay ratio.
For comparison to specific employee roles at UnitedHealth:
- The average health actuary earns $120,000 at UnitedHealth
- A claims processor earns approximately $45,000
- The average registered nurse salary is $75,000
- A call center employee earns around $36,000
So while high compared to the average worker, Witty’s pay is common for the CEO of such a large corporation.
How Witty’s Estimated Pay Compares to UnitedHealth’s Financial Performance
With estimated total compensation of approximately $25 million per year, Witty earns around 0.009% of UnitedHealth Group’s total annual revenues.
Another comparison is Witty’s estimated pay relative to UnitedHealth’s profits. At around $25 million annually, Witty’s compensation is approximately 0.14% of the company’s $17 billion in net earnings last year.
While still a large salary, Witty’s pay is a relatively small fraction compared to the overall size and financial results of UnitedHealth Group. This helps justify the high CEO compensation as it is aligned with strong corporate performance.
Key Takeaways
In summary, while the details are not public, reasonable estimates based on available information suggest:
- Andrew Witty likely earns total compensation of $20-30 million per year as CEO of UnitedHealth Group
- His pay is on par with CEOs at other major insurance and healthcare companies
- Witty’s compensation is estimated to be around 186 times higher than UnitedHealth’s median employee salary
- His pay is a small fraction (under 0.15%) of UnitedHealth’s enormous annual profits
Overall, Witty appears to earn market-competitive pay when benchmarked to peers and is incentivized by strong alignment to UnitedHealth’s exceptional financial performance.
Conclusion
In his role as CEO of the largest health insurer in America, Andrew Witty likely earns total compensation of approximately $20-30 million annually. While specifics are not disclosed, this range is reasonable based on comparative CEO salaries, UnitedHealth’s financial results, CEO pay ratios and Witty’s long tenure leading major global healthcare corporations.
Witty’s pay reinforces how the leaders of even non-tech companies can earn tens of millions in compensation when overseeing highly profitable corporations with revenues in the hundreds of billions. But given UnitedHealth’s success and growth under his leadership, Witty seems to merit his estimated multimillion dollar earnings each year.